EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0101*
HOUSE BILL 101
N1, M5 3lr0404
(PRE–FILED) CF SB 593
By: Delegate Charkoudian
Requested: September 16, 2022
Introduced and read first time: January 11, 2023
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 25, 2023
CHAPTER ______
AN ACT concerning 1
Condominiums – Common Elements – Clean Energy Equipment 2
FOR the purpose of authorizing certain governing bodies of a condominium to grant an 3
interest certain interests affecting the common elements of the condominium for the 4
installation and use of leased clean energy equipment; and generally relating to the 5
common elements of a condominium and leased clean energy equipment. 6
BY repealing and reenacting, with amendments, 7
Article – Real Property 8
Section 11–125 9
Annotated Code of Maryland 10
(2015 Replacement Volume and 2022 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Real Property 14
11–125. 15
(a) The existing physical boundaries of any unit or common element constructed 16
or reconstructed in substantial conformity with the condominium plat shall be conclusively 17
presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 18
of any building and regardless of minor variations between the physical boundaries as 19 2 HOUSE BILL 101
described in the declaration or shown on the condominium plat and the existing physical 1
boundaries of any such unit or common element. This presumption applies only to 2
encroachments within the condominium. 3
(b) If any portion of any common element encroaches on any unit or if any portion 4
of a unit encroaches on any common element or any other unit, as a result of the duly 5
authorized construction or repair of a building, a valid easement for the encroachment and 6
for the maintenance of the encroachment exists so long as the building stands. 7
(c) An easement for mutual support shall exist in the units and common 8
elements. 9
(d) The grant or other disposition of a condominium unit shall include and grant, 10
and be subject to, any easement arising under the provisions of this section without specific 11
or particular reference to the easement. 12
(e) (1) The council of unit owners or its authorized designee shall have an 13
irrevocable right and an easement to enter units to investigate damage or make repairs 14
when the investigation or repairs reasonably appear necessary for public safety or to 15
prevent damage to other portions of the condominium. 16
(2) Except in cases involving manifest danger to public safety or property, 17
the council of unit owners shall make a reasonable effort to give notice to the owner of any 18
unit to be entered for the purpose of investigation or repair. 19
(3) If damage is inflicted on the common elements or any unit through 20
which access is taken, the council of unit owners is liable for the prompt repair. 21
(4) An entry by the council of unit owners for the purposes specified in this 22
subsection may not be considered a trespass. 23
(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 24
SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 25
grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 26
affecting the common elements of the condominium if the grant is approved by the 27
affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 28
and with the express written consent of the mortgagees holding an interest in those units 29
as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 30
interest granted by the council of unit owners under this subsection shall state that the 31
grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 32
votes, and by the corresponding mortgagees. 33
(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 34
SUBSECTION, THE board of directors may, by majority vote, grant e asements, 35
rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 36
utility services or communication systems for the exclusive benefit of units within the 37 HOUSE BILL 101 3
condominium regime. These actions by the board of directors are subject to the following 1
requirements: 2
(i) The action shall be taken at a meeting of the board held after at 3
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 4
(ii) At the meeting, the board may not act until all unit owners and 5
mortgagees shall be afforded a reasonable opportunity to present their views on the 6
proposed easement, right–of–way, license, lease, or similar interest; AND 7
(iii) The easement, right–of–way, license, lease, or similar interest 8
shall contain the following provisions: 9
1. The service or system shall be installed or affixed to the 10
premises at no cost to the individual unit owners or the council of unit owners other than 11
charges normally paid for like services by residents of similar or comparable dwelling units 12
within the same area; 13
2. The unit owners and council of unit owners shall be 14
indemnified for any damage arising out of the installation of the service or system; and 15
3. The board of directors shall be provided the right to 16
approve of the design for installation of the service or system in order to insure that the 17
installation conforms to any conditions which are reasonable to protect the safety, 18
functioning, and appearance of the premises. 19
(3) By majority vote, the board of directors may grant to the State 20
perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 21
affecting the common elements of the condominium for bulkhead construction, dune 22
construction or restoration, beach replenishment, or periodic maintenance and replacement 23
construction, on Maryland’s ocean beaches, including rights in the State to restrict access 24
to dune areas. These actions by the board of directors are subject to the following 25
requirements: 26
(i) The action shall be taken at a meeting of the board held after at 27
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 28
and 29
(ii) At the meeting, the board may not act until all unit owners and 30
mortgagees shall be afforded a reasonable opportunity to present their views on the 31
proposed easement, right–of–way, license, lease, or similar interest. 32
(4) By majority vote, the board of directors may settle an eminent domain 33
proceeding or grant to the State or any county, municipality, or agency or instrumentality 34
thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 35
in excess of 1 year, or similar interests affecting the common elements of the condominium 36 4 HOUSE BILL 101
for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 1
purposes. These actions by the board of directors are subject to the following requirements: 2
(i) The action shall be taken at a meeting of the board held after at 3
least 60–days’ notice to all unit owners and all first mortgagees listed with the 4
condominium; 5
(ii) The notice shall include information provided by the 6
condemnation authority that describes the purpose and the extent of the property being 7
acquired for public use; and 8
(iii) At the meeting, the board may not act until all unit owners and 9
mortgagees in attendance have been afforded a reasonable opportunity to present their 10
views on the proposed easement, right–of–way, license, lease, or similar interest. 11
(5) (I) 1. IN THIS PARAGRAPH “CLEAN ENERGY EQUIPME NT” 12
MEANS EQUIPMENT THAT CONTR IBUTES TO: 13
A. THE PRODUCTION OF ENE RGY FROM RENEWABLE O R 14
SUSTAINABLE SOURCES ; OR 15
B. THE IMPROVEMENT OF EF FICIENCY IN THE USE OF 16
ENERGY. 17
2. “CLEAN ENERGY EQUIPMEN T” INCLUDES ELECTRIC 18
VEHICLE RECHARGING E QUIPMENT AND SOLAR , GEOTHERMAL , OR OTHER 19
ENERGY–EFFICIENT EQUIPMENT USED FOR HEATING , COOLING, OR LIGHTING 20
ELECTRIC VEHICLE REC HARGING EQUIPMENT , SOLAR ENERGY EQUIPME NT, AND 21
ENERGY STORAGE SYSTE MS. 22
(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 23
THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT 24
OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 25
THE VOTES IN THE COU NCIL, MAY GRANT EASEMENTS, RIGHTS–OF–WAY, LICENSES, 26
LEASES IN EXCESS OF 1 YEAR, OR SIMILAR INTERESTS AFFECTING THE COMMON 27
ELEMENTS OF THE COND OMINIUM FOR THE INST ALLATION AND USE OF LEASED 28
CLEAN ENERGY EQUIPME NT. 29
(III) THE BOARD OF DIRECTOR S MAY GRANT AN INTER EST 30
UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AF TER AT LEAST 31
30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 32
(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 33
OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH . 34
HOUSE BILL 101 5
[(5)] (6) The action of the board of directors granting any easement, 1
right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 2
subsection shall not be final until the following have occurred: 3
(i) Within 15 days after the vote by the board to grant an easement, 4
right–of–way, license, lease, or similar interest, a petition may be filed with the board of 5
directors signed by the unit owners having at least [15 percent] 15% of the votes calling 6
for a special meeting of unit owners to vote on the question of a disapproval of the action of 7
the board of directors granting such easement, right–of–way, license, lease, or similar 8
interest. If no such petition is received within 15 days, the decision of the board shall be 9
final; 10
(ii) If a qualifying petition is filed, a special meeting shall be held no 11
less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 12
if a quorum is not present, the decision of the board of directors shall be final; 13
(iii) 1. If a special meeting is held and [50 percent] 50% of the 14
unit owners present and voting disapprove the grant, and the unit owners voting to 15
disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 16
then the grant shall be void; or 17
2. If the vote of the unit owners is not more than [33 percent] 18
33% of the total votes in the condominium, the decision of the board or council to make the 19
grant shall be final; 20
(iv) Mortgagees shall receive notice of and be entitled to attend and 21
speak at such special meeting; and 22
(v) Any easement, right–of–way, license, lease, or similar interest 23
granted by the board of directors under the provisions of this subsection shall state that 24
the grant was approved in accordance with the provisions of this subsection. 25
[(6)] (7) The provisions of this subsection are applicable to all 26
condominiums, regardless of the date they were established. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2023. 29